Implications for leadership and management

Accounting Ahead | Original study resource | accountingahead.com.au

Implications for leadership and

management

MODULE 2 | 2.7 | STUDENT COMPANION

Why it matters. CPAs help align structure with strategy, allocate resources and budgets, and set key

performance indicators. Identifying the key external factors guides decisions about whether change is

needed and which strategies to pursue, and it gives transformational leaders the evidence they need to

convince people that change is necessary.

Four roles of leaders in the external analysis

1. Frame

Point the analysis at the

forces that matter; keep it

consistent and disciplined

2. Resource

Provide the people, time,

money and data to do it

properly

3. Challenge and

stay open

Question untested

assumptions, yet stay open

to what the evidence shows

4. Act

Make the decisions the

evidence supports, with

contingency plans

Scepticism without openness misses the future; openness without scepticism chases every fad

Responding to change

What leaders should do

Known changes Know the industry's life cycle stage and watch for signs of transition to the next

Unknown changes Watch for disruptions: established thinking blinds incumbents until it is too late

Foresight Learn the industry's history and emerging trends; prepare contingency plans

Ethics Weigh and safeguard all stakeholders' interests: integrity, accurate and objective

information, transparency, data protection, confidentiality, compliance

Using the analysis Position the organisation, tilt the forces in its favour, and respond early to shifts

Managing data

Gather data needs across marketing, finance, legal and operations; manage data in-house, through data

curators or specialist firms; be clear about what is needed and why. Information technology and finance leaders

should work together on digital foundations, innovation and defence against disruption, through disciplined

innovation programs tied to the strategy.

GLOBAL STRATEGY AND LEADERSHIP | M2 | 2.7 | STUDENT COMPANION

1

Accounting Ahead | Original study resource | accountingahead.com.au

Key questions and the tools that answer them

Key question Tools from this module

What's our industry, and how broadly should we define it? Industry definition

How do products reach customers, and where do we sit? Industry value chain

Which segments exist, and which are growing or shrinking? Industry segmentation, historical data

Which life cycle stage is the industry in, and are all segments at the same

stage?

Industry life cycle

Which remote factors drove past growth, and which will drive future growth? STEEPLE

Which forces determine profitability, and how are they changing? Five forces, plus complements

Who are the customers, and how are they grouped? Market segmentation

How do providers compete, and what does it take to succeed? Basis of competition, strategic groups, key

success factors and a competitor analysis

worksheet

What makes digital platforms different

Algorithms and data

Collect and process data, and make

decisions from it

Network effects

Each new user makes the platform more

valuable to others

Data advantages

Scale and scope newcomers can't match

raise entry barriers

Growth before profit

Many put user numbers ahead of

short-term profit

Expansion

Move into related services to gather more

data

Effortful switching

Time, effort and attention keep users

loyal

Competition is rarely just one click away

Why platforms challenge competition law

Issue Why it is hard

Defining the market Services are often free to users and paid for by advertisers

Merger reviews Turnover or asset thresholds can miss the purchase of a young, data-rich start-up

Timing of intervention Repairing competition after a platform dominates is difficult, so many argue for

regulating the largest platforms in advance

GLOBAL STRATEGY AND LEADERSHIP | M2 | 2.7 | STUDENT COMPANION

2

Accounting Ahead | Original study resource | accountingahead.com.au

Case note: Australia's News Media Bargaining Code

Australian news publishers had watched advertising revenue move to the large digital platforms. On 25 February

2021 the federal parliament passed the News Media Bargaining Code, designed to make the largest platforms

negotiate payment with Australian news businesses. A week earlier, Facebook had blocked news for its

Australian users, briefly catching some government, health and emergency pages too. After last-minute

amendments, news was restored, and Google and Meta signed more than 30 deals with publishers, which the

then ACCC chair Rod Sims estimated at more than A$200 million a year. In 2024 Meta said it would not renew

its deals, and in August 2026 Parliament passed a News Bargaining Incentive: a charge of 2.5% of large

platforms' Australian advertising revenue, reduced by deals with news publishers. A political and legal factor

keeps reshaping the bargaining power between an industry and the platforms it depends on.

Sources: SBS News, 25 February 2021; Treasury, News Media Bargaining Code review, December 2022; Press Gazette, 24 February

2022; Treasury and Reuters, 20 August 2026.

GLOBAL STRATEGY AND LEADERSHIP | M2 | 2.7 | STUDENT COMPANION

3

Accounting Ahead | Original study resource | accountingahead.com.au

Practice questions

MODULE 2 | 2.7 | TRY THESE BEFORE THE WORKED ANSWERS

Question 1 - Match the questions to the tools

Imagine Coral Coast Ferries, which is considering a new regional ferry route.

Strategic question Tool(s) to use

(a) Should we see our industry as passenger ferries, or as regional

transport?

(b) Will travel on this route grow faster than average over the next five

years?

(c) Can we earn a decent return, given fuel suppliers and the port

authority?

(d) Should we target commuters, tourists or freight customers?

(e) Who else serves this route, and how do they compete?

(f) Is regional ferry travel a growing or a mature industry?

(g) Where do we sit between shipbuilders, ports and booking platforms?

GLOBAL STRATEGY AND LEADERSHIP | M2 | 2.7 | STUDENT COMPANION

4

Accounting Ahead | Original study resource | accountingahead.com.au

Question 2 - Platforms and a regional tour operator

Imagine Red Dust Tours, a small outback tour operator. About 70% of its bookings come through two global

online travel platforms, which charge commissions of 15% to 20%, control how high its tours appear in search

results, and host the reviews that most customers read. Analyse the power the platforms hold over Red Dust

Tours, and recommend how it could respond.

Question 3 - When the chief executive dismisses the evidence

Imagine you are the CPA in the strategy team of a chain of 120 petrol stations. The external analysis shows

electric vehicle sales rising quickly, but the chief executive says: 'Electric cars are a fad. Our customers will

always need petrol.' How should you respond?

GLOBAL STRATEGY AND LEADERSHIP | M2 | 2.7 | STUDENT COMPANION

5

Accounting Ahead | Original study resource | accountingahead.com.au

Worked answers

MODULE 2 | 2.7 | WORKED ANSWERS - ATTEMPT THE QUESTIONS FIRST

Question 1 - Coral Coast Ferries

Question Tool(s)

(a) Ferries or regional transport? Industry definition (narrow versus wide)

(b) Faster than average growth? STEEPLE remote analysis, with an average growth benchmark

(c) A decent return? Five forces (supplier power, rivalry and so on) and a profitability

benchmark

(d) Which customers? Market segmentation and segment analysis

(e) Who else, and how? Basis of competition, competitor analysis worksheet, strategic groups

(f) Growing or mature? Industry life cycle, historical data

(g) Where do we sit? Industry value chain

Question 2 - Red Dust Tours

Assessment: the platforms are powerful buyers and gatekeepers of distribution. They supply most bookings

(concentration), set commissions, control visibility in search, and host the reviews. Network effects make them

the first place travellers look, so leaving is costly.

Build direct channels: a good website, email lists, repeat-customer offers and partnerships with local

tourism bodies.

Use platforms for discovery, then convert direct: encourage repeat customers to book direct next time.

Diversify: add other platforms, inbound travel agents and corporate or school groups.

Differentiate: create experiences that earn outstanding reviews, which strengthens its position on every

channel.

Track the economics: measure the true cost of each channel, including commissions.

Question 3 - The CPA's response

Bring evidence, objectively: registration and sales data, trends overseas, charging infrastructure growth,

and the time frame over which change could occur.

Quantify the impact: model scenarios for fuel volumes and margins under slow, medium and fast adoption.

Agree early warning signs: set indicators and trigger points that would prompt action.

Propose low-cost options: pilot chargers at a few sites, grow convenience retail and food, review lease

terms on sites most exposed.

Respect governance: if the risk is material, make sure the board hears about it; objectivity comes before

agreement. Acknowledge uncertainty, avoiding both dismissal and alarm.

GLOBAL STRATEGY AND LEADERSHIP | M2 | 2.7 | WORKED ANSWERS

6